Video: Ben and Jerry’s Ice-cream Wars
1. What was Ben and Jerry’s ‘strategy’ in the video? 2. What stimulated the strategy?
3. Was it planned or emergent?
4. Was it successful?
5. How does this case help you think about ‘What is strategy?’
Were their decisions strategic?
* Affected company as a whole
* About scope and direction
* Yes, they had to invest 5 pounds in a “correspondence course in ice-cream making” (core competence)??? * Was ice-cream making their core competence?
* How were they different?
* Differentiation (good value, “chunky”, hip) BUT: for everyone: * “The key was their UNIQUE ice-cream” – the invention of the “chunk” (de different – seeking competitive advantage)“weird flavours with lumps in” * Comparison even made: whole nut “as opposed to this kinda bullshit. I mean, this is absurd!” [DIFFERENTIATION] What is Haagen Dazs’ strategic position on the strategy clock? * Isn’t it stupid to take exactly the same strategic position as such a dominant competitor? [luxury & foreignness/being exotic vs. Inclusiveness & patriotism] * “they liked the ice-cream”
* “two regular guys” “they wanted to support what we were doing, so everybody came” * 1979, they marked their anniversary by holding the first-ever free cone day, now a nationwide annual celebration (wiki) [series of events linked to sustainability, resonating with Hippie” image] What does that say about the “fit” of their strategy?
* “It was just the funkiest ice cream shop I have ever been in” (it’s not really about the ice-cream) – good internal fit. * All activities aligned
* Good external fit, responding to macro-trends
* hippie attitude
* Great combination of resources
* owner tenacity
* hippie culture